Health tech experts view Amazon as a major threat
Amazon is viewed as the biggest threat to health systems’ core business in 2023, according to more than half of health tech experts who were recently surveyed.
The survey, conducted by Health Tech Nerds (HTN), queried 90 health tech experts, including startup operators, founders, investors, corporates and more, on what they are expecting in 2023.
Surprisingly, more than half of respondents (52%) said they expect Amazon to be the biggest threat to health systems’ core business this year. Almost one-third of respondents predict that Amazon could acquire a health insurance arm in 2023.
The findings about Amazon come after the e-commerce giant announced it planned to acquire One Medical, a primary care group, for $3.9 billion. The tech company also closed its own care services offering, Amazon Care, at the end of 2022. Amazon also recently launched its virtual care service, Amazon Clinic.
M&A predictions
Among other predictions for 2023, survey respondents expected the slowdown in deals volume to continue from 2022, with nearly two-thirds predicting two or fewer health tech companies to go public in the new year. Additionally, 16% expect no private health companies to go public in 2023. Those who do believe some companies will go public this year are keeping an eye on Omada Health and Included Health as those most likely to do so.
Health tech experts also had their eye on some of the biggest acquirers in 2023. CVS Health was mentioned as the biggest acquirer of the year among 29% of respondents, though others also noted Optum (10%) and Amazon (8%). The top acquisitions targets included Privia, Oak Street Health, Aledade, agilon, CanoHealth, Carbon Health, plus other nonspecific targets. In addition, CVS Health was the top consolidator that could have the biggest leap forward in its healthcare strategy in 2023.
While most tech health experts expect Amazon to have the biggest impact on health systems’ core business, Teladoc (48%), Walgreens (46%) and CVS (42%) were noted as the most likely partners to health systems’ business in the new year.
Outside of mergers and acquisitions, survey respondents also predicted the most unexpected headline in 2023. Here are some of those headlines:
- “Tiger Global sells entire healthcare portfolio to the Saudis”
- “100 healthcare companies shuttered in aftermath of over exuberant VC and growth-at-all-cost spending in 2020-2022”
- “Amazon buys UHG”
- “At least one big VC-backed employer focused mental health company will go bankrupt (e.g., Lyra, Spring, Modern, etc.)”
- “Biden's administration fights to break up UnitedHealthcare”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."